The scam involves a prime plot in south Mumbai’s Colaba on which a 31-storey building was constructed by the society.

“Both, Phatak and Tiwari have been remanded to CBI custody till April 12. They were arrested after interrogation Tuesday,” a CBI official said.

Phatak was the municipal commissioner of Mumbai in 2010 when the height of the society’s building was allowed to be increased beyond 100 metres but without approval from the high-rise committee of the civic agency body. Phatak’s son has been allotted a flat in the society.

All seven had been remanded to CBI custody, which ended Tuesday. They were remanded to judicial custody till April 17.

The CBI’s action last month had come after a Bombay High Court division bench of Justices P.B. Majmudar and R.D. Dhanuka questioned the agency for delaying the arrests in the case.

The court had on March 12 rapped the CBI for not initiating action against government officials involved in the scam.

The division bench had on Feb 28 also castigated the Enforcement Directorate for “serious lapse” in failing to initiate investigations against some Adarsh society members allegedly involved in money-laundering.